The Effect of Liquidity on Firm Value with Profitability as Moderating Variable
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 12
Abstract
The purpose of this study is to analyze the effect of liquidity on firm value, and the effect of profitability as a moderating variable between liquidity and firm value in the company. The population in this study are manufacturing companies in the consumer goods industry, the food and beverage sub-sectors, and also cigarette sub-sectors. The population of this study was food and beverage and cigarette sub-sector companies listed on the Indonesia Stock Exchange (IDX) in the period 2016 to 2020. The sampling technique used the purposive sampling method so that the total sample obtained was 90 companies for 5 years. The results of this study prove that liquidity affects firm value, and profitability does strengthen or weaken the effect of the firm value. Based on the results of this study proves that companies that have a high level of liquidity are able to use their current asset. So, that it will be increase their performance and it will be easier to get funding from investor and companies with high profitability are able to generate satisfying profits, so that they will get large investment opportunities and also will increase firm value.
Authors and Affiliations
Tri Pujadi Susilo
Keywords
Related Articles
- EP ID EP726638
- DOI 10.47191/jefms/v5-i12-38
- Views 68
- Downloads 0
Developing Sustainable Islamic Boarding Schools Economic Model: A Case Study from Indonesia
Islamic boarding schools as educational institutions as well as social institutions have a strategic role in building community independence. In reality, people often underestimate the role of Islamic boarding schools, a...
Inter-Relationship between Buffettology and Several Companies in the LQ-45 Index, Period of 2010-2021
This study is intended to investigate whether the Indonesian Reference Index, in this case, the LQ 45, consistently applies the principles of prudent investment, known as the Buffettology principle. Buffettology which is...
Digital Marketing Framework for Improving Effective Market Performance of the Operators in the Middle East Industrial Process Automation and Equipment Manufacturing Market
To reach logical conclusion on how digital marketing can be integrated as part of the operational strategy that improves the effective market performance of the operators in the Middle East industrial automation and equi...
The Influence of Internal and External Factors on the Stock Price of Property & Real Estate Companies
This study aims to examine the influence of internal factors and external factors on stock prices. Internal factors are measured by return on assets (ROA), earnings per share (EPS), debt to equity ratio (DER) and externa...
The Effect of Free Cash Flow as a Moderating Variable on the Influence of Company Size and Liquidity on Dividend Policy
The purpose of this analysis is to demonstrate the effect of company size and liquidity on dividend policy in basic industry and chemicals companies listed on the Indonesian stock exchange, with free cash flow as a moder...